Weak Indian rupee is good for export, but not as good as it seems
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The RBI's firm intervention shored up the rupee yesterday when it rebounded to close 65 paisa stronger at 90.38 a dollar reversing a five-day streak of free fall, as the central bank likely intervened in the foreign exchange market. After breaching the psychologically important mark of 90 per US dollar, in less than two weeks the rupee crossed the 91-level on Tuesday. The rupee took only 13 days to go from 90 to 91 per dollar.Also Read: Call 91.1 for rupee answered! How RBI rescued INR after 5-day slideMany think the rupee may keep sliding down in the near term due to the uncertainty on the India-US trade deal and unabated capital outflows. While a weak rupee can negatively impact inflation and corporate margins among other things, it is considered good for exports as it increases India's export competitiveness, especially when India is trying to boost its exports due to tariff tensions, exploring alternative markets. Rupee depreciation influences the trade balanc...